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7 August, 09:41

Explain how a firm loses value during the bankruptcy process from both a creditors and a shareholders perspective.

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  1. 7 August, 10:08
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    For a creditor, the credit rating of the firm nosedives and future transactions will be affected. For a shareholder, there will usually be a substantial decline in the value of the shares in the time leading up to the company's bankruptcy declaration.
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